Chester Corp Note That the Direct Labor Wage Rate Is a Flat

Chester Corp. produces three products: Clips, Staples, and Pens. Chester uses department overhead rates for Assembly and Packing, both of which are based on machine hours. The following information is available for the next period: $$\begin{array} { l r r r } \text { Product } & \text { Clips } & \text { Staplers } & \text { Pens } \\\hline \text { Units Produced } & 1,000 & 1,000 & 2,000 \\\text { Machine Hours (Assembly) } & 1 & 3 & 2 \\\text { Machine Hours (Packing) } & 1 & 1 & 1 \\\text { Direct Labor hours (per unit) } & 2 & 2 & 2 \\\text { Direct Materials cost (per unit) } & \$ 10.00 & \$ 90.00 & \$ 30.00\end{array}$$ Note that the direct labor wage rate is a flat $25 per hour with no overtime incurred. Also, total overhead costs are $420,000 for the Assembly Department and $240,000 for the Packing Department.Calculate the effect of using a plantwide rate as opposed to departmental overhead rates on the three products. (Round to two decimal places, when necessary.)